BOI Grants True Digital Park as “Digital Park”, Allowing Extra 1-year Tax Exemption to Tenants

Thailand is moving forward in playing a critical role as a hub for innovation as the kingdom aims to develop its economy and society.  In order to take advantage of its strategic location within the Southeast Asian region and become competitive with long term growth, Thailand has already set up TDPK, a campus to support an “open innovation” ecosystem.

Spanning over the space of 200,000 square meters, the campus is Thailand’s first and Southeast Asia’s largest startup campus.  It is set to provide a network and support for multinational companies, startups, business operators, investors and Research and Development centers.  Located in the east of Bangkok, near Punnawithi BTS Station, TDPK is part of the Bangkok CyberTech District (Innovation District).  The space is comprised of co-working spaces, offices—or what is called campus space, open labs and event spaces.

Now BOI is providing an additional reason for companies to set up their bases at TDPK.  It has recently granted True Digital Park as a digital park. This gives additional rights and benefits, including an additional year of corporate tax exemption to True Digital Park tenants.  This is on top of up to 7 years tax exemptions companies can be eligible to under BOI, making it a total of 8 years.  (The incentive cannot exceed 8 years.)

Both Thai and foreign companies are eligible for the tax exemption from the BOI if they are approved.  However if a company has already received a tax exemption prior to moving into TDPK, it is not eligible.

Meanwhile companies that have not registered for the incentive yet, but are already located in True Digital Park, are still eligible to receive the same right.  These companies can go through the regular application process with the BOI or they can request for advice from the government Startup Thailand Center located in the park.  Ultimately the company’s address given in the application guarantees the company will receive the incentive automatically.

The fields of business qualified for the support are listed on the BOI website and can be requested from the BOI each year.  These fields include Agriculture and Agricultural Products, Mining, Ceramics and Basic Metals, Light Industry, Metal Products, Machinery and Transport Equipment / Electronic Industry and Electric Appliances, Chemicals, Paper and Plastics, Services and Public Utilities, Technology and Innovation Development, Bio-based and Medical Industries, Advanced Manufacturing Industries, Basic and Supporting Industries, High Value Services and Creative and Digital Industries.

There is no deadline for when companies should lease their lots at TDPK. However the leases of the companies need to equal the years of incentives given to them so that they can be verified by the Revenue Department.

The Thailand Board of Investment (BOI) is the investment promotion agency for Thailand that facilitates foreign direct investment. BOI’s services are free of charge and customized to help business succeed in Thailand. For more information, please visit http://www.boi.go.th and http://www.thinkasiainvestthailand.com

And if you are interested in establishing a business at True Digital Park, please contact hello@truedigitalpark.com.